Singapore Stock Exchange Simplifies Trading Process with Blockchain Technology

[Blockchain Today Reporter Park Yohan] Singapore-based stock exchange (SGX) establishes a joint venture with investment company Temasek to expand the use of blockchain technology.

SGX announced that it launched a joint venture with the investment company Temasek through a press release on the 22nd (local time) and that it has simplified the issuance and transaction of financial products registered on the platform by using distributed ledger technology (DLT). The use of makeup ledger technology can increase efficiency in many aspects of financial products, from registration and issuance to transaction completion.

According to Nikkei Asia reports, the company is considering bonds, funds and financial instruments, and plans to expand its use to other assets such as stocks in the future.

SGX previously participated in an experiment with Temasek and HSBC Bank to issue fixed income securities using blockchain technology. The first test results came out in September 2020. It succeeded in issuing $300 million in bonds to Singapore’s local food and agricultural products company Olam International.

Since then, the system has issued three more fixed-income securities, with a total value of Singapore dollar 1 billion (USD 75 million).

SGX announced that it plans to expand and extend the experiment through an investment joint venture. Lee Beng Hong, CEO of SGX Fixed Income, Currency and Industrial Products, said to the new investment joint venture, “We are very pleased that we have taken the digital asset business to the next level through the partnership with Temasek.”